According to the latest statistics, there are a staggering 108.4m contactless cards in issue in the UK, and last year £25bn was spent via contactless payments. Consumers are becoming more and more comfortable with the convenience of tap and pay in shops, on public transport and even in taxis.
If your business hasn’t adopted contactless yet, don’t put it off any longer. Here are six good reasons to get on with it!
With contactless, transactions are faster than with cash or chip and pin – one tap and the job’s done! According to research by Barclaycard , by 2021 UK shoppers will be saving 141 million shopping hours compared to 2017, thanks to shorter transaction times through contactless. With most contactless transactions, no verification is needed and you don’t need to print out a receipt. That means less frustrating time in the queue for your customers too – win-win!
The average transaction value (ATV) increases with contactless cards, as customers don’t need to rely on whether or not they’ve got enough cash on them, making impulse purchases more likely. Looking at the numbers, there’s been an upward trend in average contactless spend year on year since March 2014, when the ATV was £6.53 – by April 2017 this had risen to £9.40.
Contactless is convenient and gives a better customer experience. Research shows 75% of businesses that have introduced contactless payments are processing 30% more transactions every day! If customers know they can pay you with a contactless card, they may be more likely to choose you over a competitor.
Cash handling is both time-consuming and expensive. In fact it is one of the biggest expenses for small businesses. A recent industry survey estimated that handling cash actually costs each retailer in the UK £3,638 a year, adding up to a total national bill of 17.8 billion – so there’s a hard business case for offering a range of payment methods that goes beyond enhancing the customer experience. Contactless can reduce your banking charges with less cash handling, not forgetting the fact that the risk of theft and fraud decrease accordingly.
It’ll come as no surprise that cash is falling out of favour with consumers across the UK, but the statistics might surprise you. A third of the UK say they don’t use cash anymore – and among Millennials (under 35s), that figure rises to 51%. Even the church collection plate could become a thing of the past, as the Church of England has been trialling taking contactless donations using handheld terminals so that younger congregation members can give in a way that suits them. Mobile phones have given contactless even more traction, as Apple Pay, Android Pay and S
With contactless methods extending beyond cards and mobile phones to include wristbands, key fobs, watches and even stickers, the trend of ditching cash in favour of more convenient payment methods is here to stay; some estimates suggest around 40% of retailers are already considering moving to a completely cashless model within five years.